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Best Cheap Detroit Car Insurance

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If you’re looking for cheap car insurance in Detroit, but you still want great coverage, you’re in the right place. With Michigan being the most expensive state to obtain car insurance for 6 years in a row, we understand saving as much as possible on insurance is a necessity. 

We’ve reviewed the top providers and insurers to give you the honest truth about which company is the cheapest and best overall for your car insurance needs. Whether you’re insuring several vehicles or you have a teen in the family who’s just starting out on the road, we’ve got you covered. Let’s take a closer look.  

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Best Detroit Car Insurance:

Detroit Car Insurance Overview

The price you pay for car insurance in Detroit depends on several factors. It’s understandable that in order to save money, you want to know what the state minimums are for insurance in Michigan. But in addition to the state minimums, there are also other insurance requirements:

  • Bodily injury: $20,000 per person up to $40,000 total per accident
  • Property damage: $10,000. Keep in mind that this is for damage that occurs out of state. Under Michigan law, property damage is covered under PPI or Property Protection Insurance and you must have a minimum of $1,000,000 worth of coverage.
  • Michigan Catastrophic Claims Association Fee (MCCA): All insured drivers in Michigan must also pay the Michigan Catastrophic Claims Association fee. This fee ensures that all insured drivers can have unlimited medical coverage should they be injured in an accident. Your insurer pays this fee out of your premium. 

What You’ll Need to Know Before You Get Coverage in Detroit

Michigan car insurance rates are some of the highest in the nation. Make sure you understand insurance minimums and specific driving laws before you get coverage.

Detroit Car Insurance Minimum Explained 

Minimum liability limits in Michigan are set with bodily injury at $20,000 per person, up to $40,000 per accident. The minimum for property damage is $10,000, making Michigan one of under a dozen states with lower liability limits. 

Keep in mind that the medical portion of a Michigan insurance policy is known as PIP or Personal Injury Protection. Insurance providers are responsible for up to $500,000 of medical coverage. There are different PIP levels available from Michigan auto insurers. 

Although it may seem like a good idea to get only the minimum coverage, you have to remember that minimum coverage doesn’t cover things like collision or comprehensive insurance. Collision takes care of damages to your car itself in case of an accident, and comprehensive pays for damages from certain natural disasters (like falling tree limbs), as well as theft and vandalism

With the high cost of hospital bills and medical treatment, it’s very easy to exceed the minimum coverage, which is why it’s a good idea to invest in a plan that gives you more coverage.

Detroit Driving Laws You Should Know

Every city and state has their own specific driving laws. So if you’re going to be driving in Motor City, it’s a good idea to review specific laws before you get behind the wheel. 

Seat belt laws. Both the driver and the passenger in the front seat of a motor vehicle must wear a seat belt. The only exception is if someone has a physician’s note stating that they cannot wear a safety belt for medical or physical reasons. Rear seat passengers from the ages of 4-15 must wear a seat belt.

Those 16 and over and are passengers in the backseat are not required to buckle up, but are highly encouraged to do so as well. If the passenger is under 4 years of age, they should be secured in the proper child restraint system or a booster seat. 

Driving under the influence. It is against the law for any driver over the age of 21 to have a BAC (bodily alcohol content) level of .08 or higher. If under age 21, the BAC level is .02 or higher. If the BAC is .17 or higher, there are additional penalties involved.

Anyone showing signs of intoxication or impairment while driving, regardless of whether they’ve consumed alcohol or another controlled substance, are subject to the same fines as drunk drivers.

Cellphones. It is not illegal to use mobile phones while driving in the state of Michigan, however, you should be aware that different municipalities have different laws. Detroit has an ordinance that bans the use of cellphones while driving unless you are using a hands-free device.

Drivers cannot be ticketed for cellphone use alone; they must be pulled over for a separate traffic violation. This same ordinance applies to other types of distracting activities like texting, eating while driving, or applying makeup.

What You Can Expect to Pay for Insurance in Detroit

How much you pay for your insurance depends on several factors, including the type and age of the vehicle. Details about the primary driver also affect how much you pay for insurance, so if you’re adding a teenager, you’re going to want to know about cheap car insurance in Detroit in order to help you save money. Even things like your gender, credit score and marital status can affect your insurance rates. 

Insurance Rates by Credit Score

Did you know that how much you pay for auto insurance can depend on what your credit score is? Financial stability is a good indicator of one’s ability to pay their insurance premiums, so when you look at it that way, it’s easy to see how an evaluation of your credit score is one of many determining factors in helping you save money on car insurance. 

However, it’s worth noting that every car insurer has a different formula for how they decide the rate you’ll pay. Below is a table comparing averages of what you can expect to pay based on your credit score. 

Credit Score Cheapest Provider Rate For State Minimum Coverage
Poor 300-579 Nationwide $5,419
Fair 580-669 AAA $3,090
Good 670-739 AAA $2,351
Excellent 740+ Progressive $1,775

Insurance for Drivers With a Clean Record

If you have a clean driving record, you’re rewarded with better insurance rates. And when it comes to getting cheap car insurance in Detroit, you want to save as much money as you can. But good driving habits are about more than just putting down your smartphone and staying 1-2 car lengths away from the car in front of you in case of sudden stopping. 

Good driving habits are just as much about your ability as it is about the maintenance of your vehicle. That’s why it’s a good idea to regularly check your oil, tire pressure and water every time you fill-up the tank. As you continue to practice good driving habits and avoid having an accident, you may be able to save even more money and enjoy cheap car insurance in Detroit. 

See the table below for details on the average costs of Detroit car insurance including standard and full coverage compared to state minimum insurance:

Insurance AgencyState Minimum InsuranceStandard CoverageFull Coverage
USAA$2,513$2,629$2,718
Travelers$2,683$2,783$2,856
State Farm$1,922$2,145$2,529
Progressive$1,699$2,071$2,423
AAA$1,822$2,220$3,040

Insurance with Driving Infractions

Even if you don’t have a perfect driving record, you may still be able to save money on your car insurance. While it’s true that driving infractions like speeding, running a red light or failing to use your turn signal appropriately can increase the cost of your car insurance, serious infractions like failing to stop for pedestrians crossing or for a school bus can increase your insurance rates, especially if you receive a ticket or citation for these violations. In addition, there are insurance agencies that work with high-risk drivers to provide them with the best coverage and rates.

So what could you expect to pay for car insurance in Detroit? See the table below for some examples: 

Insurance Agency At-Fault Accident Speed Violation DUI
USAA$3,633$3,174$4,761
Travelers$4,479$4,020$4,661
State Farm$4,586$3,970$4,710
Nationwide$3,975$3,569$4,372
Progressive$3,227$3,098$4,575

The 4 Best Insurance Providers in Detroit, Michigan

If you’re wondering who the best insurance providers in Detroit are, the answer is “it depends”. What constitutes the best is going to depend on things like your driving record, how many vehicles you want to insure, the type of coverage you want, and so on. 

We’ve selected what we feel are the best companies offering cheap car insurance in Detroit to give you an unbiased look at your options: 

Pros
  • More welcoming to less-experienced drivers
  • Great website and mobile app functionality
  • Driving based discounts can be generous
Cons
  • Relatively smaller agent network may leave some without a local agent
  • Rates can increase at renewal based on driving data from Progressive’s Snapshot.

1. Cheapest Car Insurance: Progressive

As you’ll see from the tables above, USAA offers the cheapest car insurance in Detroit by far. If you don’t meet the eligibility requirements, however, the second option would be Progressive.

Progressive is also a great option for new drivers or drivers with less than perfect records. With a simple online application process, you can insure your vehicle, contact your agent, and file claims within minutes. 

Read Benzinga’s full Progressive Auto Insurance Review

Pros
  • More welcoming to less-experienced drivers
  • Great website and mobile app functionality
  • Driving based discounts can be generous
Cons
  • Relatively smaller agent network may leave some without a local agent
  • Rates can increase at renewal based on driving data from Progressive’s Snapshot.

2. Car Insurance in Detroit For Multiple Cars: Progressive

Whether you’re covering a new driver in the family, or you want to save money by putting multiple cars on the same insurance policy, Progressive is a good option for multiple car insurance coverages in Detroit. 

Progressive offers discounts for policyholders that bundle cars and can even insure your home, apartment, boat, RV, and more.

Read Benzinga’s full Progressive Auto Insurance Review

3. Best Premium Car Insurance: State Farm

If you need car insurance to cover your luxury vehicle, State Farm is going to be a solid option in Detroit. Additional options can help further enhance your insurance protection from things like vandalism, fire or other accidents.

While it’s no secret that Detroit is an expensive option as far as car insurance goes, State Farm is a solid choice in terms of affordability and maximum coverage at the best rates. 

If you still aren’t sure if State Farm is right for you, check out our guide to the best sports car insurance companies.

Pros
  • Complete line of insurance, banking, and investment services
  • Easy online forms to quote and bind policies
  • Top-rated customer satisfaction
Cons
  • Very few physical locations
  • Only available to select groups, generally tied to military service and the relatives of members

4. Best for Military and Military Families: USAA

USAA is a top-notch financial institution and has excellent customer service. Car insurance is no exception. What’s more, even if you’re not in the military, you may still be eligible to be a USAA member and get car insurance coverage this way.

For example, if your spouse is an active or former military member, or you have parents who were in the military and were USAA members, you may be eligible even if you didn’t serve in the armed forces yourself. 

Read Benzinga’s full USAA Auto Insurance Review

Choosing The Right Car Insurance

The best way to find cheap car insurance in Detroit is to get quotes from a number of top-rated, reputable and reliable insurers. We’ve profiled some of the best choices here, however, it’s a good idea to get your own custom quote by filling out specific details such as the make and model of your vehicle, and other demographic information.

You may even be able to save more money with certain insurers by enrolling multiple cars in a policy or bundling home and auto policies. Be sure to ask the insurer about any discounts or savings you may qualify for in order to save the most money on car insurance in Detroit.

Want to learn more about finding the best insurance coverage? Check out Benzinga’s guides to the best homeowners insurance in Michigan, the best vision insurance in Michigan, best classic car insurance, the best commercial car insurance companies and the best no-fault insurance companies.

Frequently Asked Questions

1) Q: How does my personal credit play a role?

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1) Q: How does my personal credit play a role?
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Insurance carriers run credit scores to help determine policy premiums. Your insurance rates will likely be lower if you have an excellent credit score. On the other hand, your insurance rates may be higher if you have a poor credit score. Insurance companies believe credit scores are an indicator of whether you’ll make your insurance payments on time and credit scores combined with other data can be predictive of risk. Check out the best companies for all credit scores now.

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2) Q: Should I have just the minimum amount of car insurance required by my state?

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2) Q: Should I have just the minimum amount of car insurance required by my state?
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It’s a good idea to purchase more than the state minimum of any type of insurance. State minimums are set relatively low to keep insurance affordable, but in the case of an accident, you can deplete your minimums quickly with expensive medical and property damage costs. Once your bills extend past the minimums, you’ll personally be liable for additional costs and damage. Get the coverage that makes sense for you here.

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3) Q: How do I bundle my car insurance with another policy, and should I?

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3) Q: How do I bundle my car insurance with another policy, and should I?
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An agent can help you bundle your car insurance with another policy. You can get a discount on your premium by bundling your home and auto together, for example. Check out the top providers here.

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*Quotes were obtained using the following profile: base 2015 Toyota Camry, male, 40-years-old. Policies reflect state minimum coverage options. We make every effort to provide the most accurate quotes based on the profile above. Due to the many combined variables involved in insurance quotes, the only way to get an accurate quote is to enter your own information through our partners’ secure websites.

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